Over 5,000 sugar workers face job losses as private leases start
The government has authorised Chemelil, Muhoroni, Sony, and Nzoia sugar firms to issue redundancy notices as they hand over factories and land to new operators.
State-owned sugar companies that have recently been leased to private investors are moving to lay off all their employees, setting off fears of widespread job losses in the sugar belt.
The government has authorised Chemelil, Muhoroni, Sony and Nzoia sugar firms to issue redundancy notices as they hand over factories and land to new operators.
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Agriculture Principal Secretary Kipronoh Ronoh has directed the managing directors to formally notify all staff about the termination of their contracts, affecting more than 5,000 workers.
Those who wish to continue under the new ownership will be required to submit fresh applications for their positions.
Ronoh emphasised that all notices must be in writing, clearly explain the reason for termination, and specify employees’ entitlements. Copies should also be sent to county labour offices.
“Employees should also be informed that all their dues and lawful entitlements will be fully paid per the provisions of the law and the CBAs (collective bargaining agreements),” the PS said.
The announcement comes as many employees are still owed salary and allowance arrears totalling Sh5.23 billion, originally pledged to be cleared within six months of the leases. It remains uncertain whether these outstanding payments will be included in the redundancy packages.
Sony Sugar has already begun implementing the directive. Managing Director Martine Dima issued a memo stating, “The management ... wishes to notify all employees that their services with the company will terminate due to redundancy on October 31, 2025.”
The Migori-based miller has been leased to Busia Sugar Industries and renamed New Sony 2025, which will operate the company for the next 30 years. Chemelil, Muhoroni, and Nzoia have been leased to Kibos Sugar and Allied Industries, West Valley Sugar, and West Kenya Sugar, respectively.
Thousands of workers and their families face an uncertain future, while local economies that rely on the factories, including traders, transporters, and small businesses, will likely feel the impact.
Some employees, particularly those close to retirement, may benefit from terminal benefits and service gratuities, receiving sizeable payouts.
Yet, anxiety persists over whether the government will honour its earlier promise to settle arrears owed to workers.
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